The Financial Conduct Authority is concerned that customers are being charged high rates to contact financial services firms and is set to consult with industry and consumers to ensure customer calls are more affordable.
Current FCA rules require every authorised firm to have a free channel for making a complaint and while some firms do provide a freephone number, this ‘channel’ could also be by post or online.
The FCA’s consultation will propose the standardisation of the rules so that charges for consumer help and complaint lines are capped at the cost of a basic rate call.
In a letter to consumer group Which?, the FCA said it believed that the introduction of requirements in the Consumer Rights Directive, designed to ensure firms no longer charge a premium for calls, should apply to all financial services firms.
The directive requires firms to offer basic rate numbers for enquiries but at present, this does not apply to financial services firms.
In the same consultation the FCA will also look at a number of proposals to improve complaints handling by financial services firms including looking at complaints reporting and responding to the recommendations of the Parliamentary Commission on Banking Standards.
Christopher Woolard, FCA director of policy, risk and research, said: “It is not fair that customers often have to use expensive phone lines when calling firms to ask for help or to complain.”
Richard Lloyd, executive director of Which?, added: “We are pleased the FCA agrees customers shouldn’t have to pay a premium to talk to their bank or insurer.
“Changing the rules so financial firms can only offer basic rate helplines would be a big win for the 87,000 people who supported our campaign.
“Some of the biggest banks have already dropped costly calls so there is no reason why others shouldn’t follow their lead.
“We’d like to see all financial services firms change to basic rate lines as soon as possible, and not wait until new rules come into effect.”
The consultation will be published later this year.
